Ritchie Bros. conducts final auctions of 2012 and sets new records

Friday, December 21, 2012

Ritchie Bros. conducts final auctions of 2012 and sets new records07:00 EST Friday, December 21, 2012
Record $3.9 billion of equipment sold in 2012, including $1.3 billion
sold to online bidders
VANCOUVER, Dec. 21, 2012 /PRNewswire/ - Ritchie Bros. Auctioneers Incorporated
(NYSE and TSX: RBA), the world's largest auctioneer of industrial
equipment, sold approximately $3.9 billion of equipment at 328
unreserved auctions around the world in 2012. This represents a 5%
increase in gross auction proceeds over 2011 and the highest gross
auction proceeds in Company history. The Company achieved gross auction
proceeds of $1 billion in the fourth quarter alone. Ritchie Bros. (www.rbauction.com) attracted record online bidder registrations and sold approximately
$1.3 billion of equipment, trucks and other assets to online bidders in
2012, an 18% increase over 2011 and the highest amount ever sold online
by the Company in one year.
Ritchie Bros. conducted its final unreserved auctions of 2012 yesterday
(December 20) in Los Angeles, California, and St. Louis, Missouri and
plans to release its full audited annual financial statements and
Management's Discussion and Analysis for 2012 on February 26, 2013. All
dollar amounts in this release are stated in United States dollars,
unless otherwise indicated.
Summary comments
Peter Blake, Ritchie Bros. CEO, commented: "Against the backdrop of
market turbulence through the year, we are pleased with our 2012
results as we emerged well positioned to continue the growth of our
core unreserved auction business and we are ready to begin a new path
that will introduce a new customer base to our brand. In 2012, we saw
the intense competition for quality low hour used equipment recently
transition to a less competitive and more familiar environment for our
business to grow over the long term. These changes in the evolving
equipment market contributed to our performance in the year where we
saw significant gains in our online presence and bidder portal, with
over 5 million unique visitors to our 21 language website and $1.3
billion in annual online equipment sales. Our auctions in Canada
recorded over $1 billion in gross auction proceeds for the year, an
amazing feat from our network of 10 permanent auction sites within
Canada."
"We are realizing benefits, from prior investments in capital and
strategic initiatives, ranging from our continuing improvements in
operating leverage to the expansion of our global auction site network
with our new Donington Park, UK yard and the opening of replacement
sites in Chehalis, WA (replacing Olympia, WA) and Raleigh-Durham, NC
(replacing Statesville, NC)." added Mr. Blake. "2013 is shaping up to
be a great year of milestones, with the impending launch of our new
online, non-auction marketplace as a result of our AssetNation
acquisition. We also will be conducting our first unreserved auction in
Beijing, China, as well as our upcoming six-day auction in Orlando,
Florida and Grand Opening auction in Geelong, Australia - all
demonstrating the breadth in our mission statement to deliver
compelling business solutions that enable the world's builders to
easily and confidently exchange equipment."
Industrial auction results
Year ended December 31, 2012
Year ended December 31, 2011
Number of industrial auctions
221
228
Bidder registrations
389,500
385,000
Buyers
99,250
95,550
Consignments
42,100
41,300
Lots
287,000
286,500
Average industrial auction
Year ended December 31, 2012
Year ended December 31, 2011
Gross auction proceeds
$16.5 million
$15.5 million
Registered bidders
1,760
1,690
Consignors
190
181
Lots
1,300
1,180
The world's largest heavy equipment auction: Orlando, FL
Ritchie Bros. held the world's largest heavy equipment auction in
Orlando, Florida on February 13 - 18, 2012 and, in the process, broke
multiple Company records. New records were set for gross auction
proceeds ($203 million), number of lots sold (more than 10,000), total
number of registered bidders (8,670), number of sellers (830), online
gross auction proceeds (more than $47 million) and number of online
bidders (4,070).
New Canadian sales record
The Company achieved a historical milestone after selling more than CA$1
billion of equipment and trucks in its Canadian auctions in 2012. The
new record was set at the Ritchie Bros.' unreserved public auction in
Edmonton, AB on December 13 - 14, 2012. Other 2012 highlights from
Ritchie Bros. Canadian auctions include:
Largest Canadian auction in Ritchie Bros. history: Edmonton, AB on April
24 - 26, 2012 CA$108 million ($110+ million)
Largest Saskatchewan auction in Ritchie Bros. history: Saskatoon, SK on
December 4, 2012 CA$30 million ($30+ million)
Largest Quebec auction in Ritchie Bros. history: Montreal, QC on
December 5 - 6, 2012 CA $42 million ($43+ million)
First China auction announcement
On November 28, 2012, Ritchie Bros. announced it will be holding its
first unreserved public auction in China during the first half of 2013.
The Company will bring the certainty of unreserved auctions to Chinese
equipment buyers and sellers now that the Company's Wholly Owned
Foreign Enterprise application has been approved by the Chinese
government.
Ritchie Bros. has formally leased land in the Tianzhu Free Trade Zone
(Shunyi, Beijing) in preparation for this first unreserved public
auction in China. Strategically located within minutes of Beijing
Capital International Airport, the Tianzhu Free Trade Zone is connected
to one of China's largest roll-on, roll-off ports in Tianjin.
Other auction site records broken and milestones reached in 2012
Ritchie Bros. set a number of other records in 2012, including:
Tipton, California - $17 million: new regional record and most
agricultural lots ever sold at a US auction (February 17)
Brisbane, Australia - AU$52 million ($54 million): the largest
single-day auction in Company history (March 20)
Caorso, Italy - ?13 million ($17 million): the largest Italian auction
in Company history (March 8 & 9)
London, Ontario - CA$3 million ($3 million): new regional record (March
28)
Polotitlan, Mexico - Nearly $19 million: the largest Mexican auction in
Company history as well as most bidders registered for a Mexican
auction (March 28 & 29)
Regina, Saskatchewan - CA$9 million ($9 million): new regional record
(March 29)
Toronto, Ontario - CA$27 million ($28 million): new regional record
(September 25 & 26)
Raleigh-Durham, North Carolina - $76 million: new regional record and
first time selling more than 60 D11 crawler tractors in a single
auction (September 26 & 27)
Auction site network expansion
Ritchie Bros. conducted Grand Opening auctions at four new or
replacement permanent auction sites in 2012:
Las Vegas, Nevada
Donington Park, United Kingdom
Chehalis, Washington (replaced Olympia, Washington)
Raleigh-Durham, North Carolina (replaced Statesville, North Carolina)
Dividends
Ritchie Bros. increased its quarterly cash dividend in 2012, and paid
out total dividends during the year of approximately $50 million
compared to $46 million in 2011.
Online bidding statistics
Ritchie Bros. sold over $1.3 billion of equipment, trucks and other
assets to online buyers in 2012, representing a 18% increase compared
to $1.1 billion in 2011 and more than any other company in the world.
Internet bidders comprised over 60% of the total bidder registrations
at Ritchie Bros. industrial auctions in 2012.
Website statistics
The Ritchie Bros. website (www.rbauction.com) attracted more than 5.5 million unique visitors in 2012 (a 38%
increase compared to last year), and they had over 12.8 million visits
to the website (28% more than 2011).
Upcoming auctions
There are currently 77 unreserved auctions on the 2013 Ritchie Bros.
auction calendar at www.rbauction.com, which commences with a two-day auction in Houston, Texas on February 6
& 7, to be followed by auctions in Las Vegas, NV (February 8),
Donington Park, UK (February 12), Phoenix, AZ (February 12 & 13),
Tipton, CA (February 15) and a six day auction in Orlando, Florida on
February 18 - 23. 2013.
Definitions of non-GAAP measures
Gross auction proceeds represent the total proceeds from all items sold
at Ritchie Bros. auctions. The Company's definition of gross auction
proceeds may differ from those used by other participants in its
industry. Gross auction proceeds is an important measure the Company
uses in comparing and assessing its operating performance. It is not a
measure of the Company's financial performance, liquidity or revenue
and is not presented in its consolidated financial statements. The
Company believes that auction revenues, which is the most directly
comparable measure in its Consolidated Income Statements, and certain
other line items, are best understood by considering their relationship
to gross auction proceeds. Auction revenues represent the revenues
earned by Ritchie Bros. in the course of conducting its auctions, and
consist primarily of commissions earned on consigned equipment and net
profit on the sale of equipment purchased by the Company and sold in
the same manner as consigned equipment.
About Ritchie Bros.
Established in 1958, Ritchie Bros. Auctioneers (NYSE and TSX: RBA) is
the world's largest industrial auctioneer, selling more equipment to
on-site and online bidders than any other company in the world. Ritchie
Bros. offers services that enable the world's builders to easily and
confidently exchange equipment. The Company conducts hundreds of
unreserved public auctions each year, selling a broad range of used and
unused industrial assets, including equipment, trucks and other assets
utilized in the construction, transportation, agricultural, material
handling, mining, forestry, petroleum and marine industries. Ritchie
Bros. has over 110 locations in more than 25 countries, including 44
auction sites worldwide. The Company maintains a website at www.rbauction.com and sponsors an equipment wiki at www.RitchieWiki.com.
Forward-looking Statements
The discussion in this press release relating to future events or
operating periods contains forward-looking statements (as defined in
Section 21E of the Securities Exchange Act of 1934, as amended) that
involve risks and uncertainties, including, in particular, statements
regarding anticipated results for future periods; the continued growth
of the Company's unreserved auction business; the impact of introducing
a new customer base; anticipated benefits from investments in capital
and strategic initiatives; the impact from launching a new online,
non-auction marketplace; and the impact from the first unreserved
auction scheduled to be conducted by the Company in China. These risks
and uncertainties include: the numerous factors that influence the
supply of and demand for used equipment; fluctuations in the market
conditions and values of used equipment; seasonal and periodic
variations in operating results; actions of competitors; the success of
the Company's new initiatives (including the new marketplace); economic
and other conditions in local, regional and global markets; and other
risks and uncertainties as detailed from time to time in the Company's
SEC and Canadian securities filings, including the Company's
Management's Discussion and Analysis of Financial Condition and Results
of Operations for the year ended December 31, 2011 and for the three
and nine month periods ended September 30, 2012, available on the SEC,
SEDAR and the Company's websites. Actual results may differ materially
from those forward-looking statements. The Company does not undertake
any obligation to update the information contained herein, which speaks
only as of this date.
SOURCE Ritchie Bros. AuctioneersFor further information: <p> Rob McLeod<br/> Chief Financial Officer<br/> Phone: 778.331.5500<br/> Email: <a href="mailto:ir@rbauction.com">ir@rbauction.com</a> </p>

Restrictions

All rights reserved. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is prohibited without the prior written consent of Thomson Reuters. Thomson Reuters is not liable for any errors or delays in Thomson Reuters content, or for any actions taken in reliance on such content. ‘Thomson Reuters’ and the Thomson Reuters logo are trademarks of Thomson Reuters and its affiliated companies.